Wells Agrees To Sell Retirement Business To Principal For $1.2B
Wells Fargo is selling its Charlotte-based retirement and trust business for $1.2 billion to Principal Financial Group.
The deal announced Tuesday includes about 2,500 employees, mainly at offices in Charlotte; Minneapolis; Waco, Texas; and Manila, Philippines. The business manages 401(k) and pension plans for about 3.9 million people.
Jon Weiss, the head of Wells Fargo's Wealth and Investment Management division, said the sale is part of a change in strategy
“The Institutional Retirement and Trust business is well-managed, award-winning and highly respected in the market,” Weiss said in a news release. "This sale reflects Wells Fargo’s strategy to focus our resources on areas where we can grow and maximize opportunities within wealth, brokerage and asset management.”
Principal, based in Des Moines, Iowa, said the purchase would double the size of its U.S. retirement business to about 7.5 million customers.
The companies said the deal still needs federal approval. It's expected to close by Oct. 1.